BOJ Rate Hike Sends Shocks Through Markets as Bitcoin Remains Unscathed
The Bank of Japan is poised to raise interest rates for the first time in nearly three decades. Market consensus expects the policy rate to reach 1.25%, marking a significant shift from its current level. Despite the expected hike, Bitcoin has remained resilient, trading near $77,000.
According to economists surveyed by Reuters, 66 out of 68 expect a rate increase this week, with nearly 90% anticipating interest rates will reach 1.50% by March next year. The Bank of Japan's decision is driven more by fiscal pressures than inflation concerns, as the country's government bond yields have risen to their highest levels since 1996.
The market has been volatile in response to the expected rate hike, with quantifiable signs of unwinding in yen carry-trade positions. However, Bitcoin's price has absorbed a similar shock last week and remains near its current high.